Extent and challenges of application of information and communication technology in marketing in commercial banks in Kenya
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Date
2008Author
Catherine, Wanjiku G
Type
ThesisLanguage
enMetadata
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This study concerns the extent and challenges of application of Information and Communication
Technology in Marketing in commercial banks in Kenya. The study has two objectives, namely,
to investigate the extent to which Information and Communication Technology has been applied
in marketing by commercial banks in Kenya and to determine the challenges of applying
Information and Communication Technology in the marketing function of banks in Kenya. The
need for the study arose as a consequence of increased competitiveness among banks. This has
seen banks increasingly adopt Information Communication Technology in their Marketing
functions. Thus the motivation to assess the extent and challenges this new wave has occasioned.
The study employed a survey design. The population of study consisted of 43 banks
headquartered in Nairobi. Since the population was small, a census study was conducted.
Primary data was collected from 32 respondents. 19 respondents were working directly in the
marketing function although they had customized titles. The remaining 13 respondents had wider
functional roles in their banks, as indicated by their titles. Data collection was done using a
questionnaire consisting of open-ended and closed-ended questions and five point Likert-type
scales. Data analysis was done using descriptive statistics (consisting of frequencies,
percentages, means and standard deviations) and factor analysis. The latter involved Principal
Component Analysis.
Regarding the extent to which Information Communications Technology has been applied in
marketing, the findings of the questionnaire indicated that credit contact information systems
(system that provide credit information and manage credit history of customers) were the most
widely used followed by computer software (application or general purpose software like
spreadsheet or word processing). Delivering banking services was the marketing aspect where
Information and Communication Technology was the most widely used, followed by processing
of customer enquiries with bank account opening third. With respect to challenges, systems
development overrunning budget constraints was seen to be the biggest challenge faced when
implementing Information and Communication Technology in the marketing function of the
banks.
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From the literature, the use of Information Communication Technology in marketing was seen to
be maturing, as previous piecemeal systems are replaced by integrated suites, which provide a
unified view of the customer. This will enable firms to formulate holistic strategies that address
all key dimensions of their customer's needs and wants, enabling them deliver superior
performance. Key challenges that were seen to afflict Information and Communication
Technology enabled Marketing Information Systems include a misalignment between
Information and Communication Technology- and Marketing-strategies; and an inability to
leverage existing Information and Communication Technology infrastructures to the marketing
function.
This study recommends that for banks to compete effectively, there is need for more innovative
use of ICT systems. This implies embracing concepts such as computer kiosks, distribution
channel decision support systems and competitive tracking information systems which based on
the findings registered a low level of usage. A more holistic incorporation of lCT across the
entire spectrum of marketing activities would also help optimize on ICT utilization in the sector
as well as increase the levels of marketing effectiveness and efficiency. In order to improve lCT
implementation, the study recommends that overall, firm strategy be aligned well with both
marketing strategy and ICT strategy.
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration